Widespread airfare hikes are forecast for 2023 with airlines blaming the current ‘volatile’ economic background
Worldwide increases in air travel prices have been predicted due to a number of causes, including inflation, rising fuel prices, and capacity difficulties.
American Express Global Business Travel (Amex GBT) issued a warning that price fluctuations are likely to differ significantly by location and across the two hemispheres.
Key transatlantic services between Europe and North America are expected to have “moderate” increases of 3.7% each year, according to an annual estimate of air pricing movements on popular business travel routes.
However, because the recovery of airline capacity lags behind the uptick in demand, greater rises of 6% for business class and 5.5% for economy are anticipated for flights inside Europe (UK-Spain eg). Even sharper price hikes are expected for travel to Asia, with economy flights to and from Europe up 12% and 7.6% in the business cabin.
“The volatile economic environment makes it challenging for travel teams to plan ahead. We want to equip our clients with the insights they need to build strong travel programmes.
“As consultants, we want to go beyond travel with our clients and help them anticipate changes in our industry, so this report also looks at trends such as sustainability and the future of work and asks how travel teams can respond,” said Amex GBT global business consulting vice president Julie Avenel.